Asian market preview 22/01/2008

The US markets were closed last night. However, all the futures indicated that the markets are still going to the downside. Dow futures were off by 522 pts to 11584, S&P500 off by 60.20 pts to 1265.10 while Nasdaq was downed by 76 pts to 1773.50. Investors are worried about the recession that's seem inevitable to avoid.
Asian markets may open lower again today and may even fall further from yesterday's close. Technical rebound logically would happen, but in this case, there's too many investors who are still very nervous and uncertain regarding the global economy that a rebound may take longer to happen than usual. Many analysts have said that US' recession may have limited impact on Asian region as the countries in Asia have relied less on the US in recent years. Crude oil and gold also decline on recession fears will lessen people's buying power. Oil at $88.60ish per barrel, gold at $866 and JPY at 105.75 recently. Nikkei futures in Osaka was closed at 13080 while in Singapore, Nikkei futures closed down at 12890.
The Kospi may open lower today and may lose more points in a highly volatile market. Technically, the market is bound to have a rebound soon, but it is most likely won't happen anytime soon if regional negative sentiment still reigned supreme. Many believed that stocks are quite cheap now and it's a good time to build their portfolios for 2008, but there's also many believed that the worst is still yet to come.
Hangseng may open further lower and may shed more points today. A correction to the 20000 level is likely to happen, some of analysts believe. A report from Citigroup in Hong Kong Monday indicated that the worst selling off may yet to be seen, since total selling to date is $3.4 billion vs. $4.9 billion in market correction in June 2006 and $4.5 billion in March last year. The report also said that outflows may reach $8 billion before market rebound.

For my price predictions for today, do not hesitate to contact me and I'll gladly answer in anyway I can.